Question

Question 11 View Policies -/1 pport Current Attempt in Progress A new accountant at Marin Inc. is trying to identify which of the amounts shown below should be reported as the current asset Cash and cash equivalents in the year-end balance sheet, as of April 30, 2017 $98 of currency and coin in a locked box used for incidental cash transactions. 1. A$12,500 US. Treasury bill. due May 31.2017 2. $370 of April-dated checks that Marin has received from customers but not yet deposited. An $98 check received from a customer in payment of its April account. but postdated to May 1 3. 4. 5. $3,760 in the company's checking account. $6,350 in its savings account. 6. $70 of prepaid postage in its postage meter 7. 8. A$38 IOU from the company receptionist. (a) What balance should Marin report as its "Cash and cash equivalents balance at April 30. 2017? $ Cash and cash equivalents balance at April 30, 2017

can somebody help me answer it? thank u

Answer 1

Answer

Cash and cash equivalents balance at April 30, 2017 $ 23078

following are calculations for your refrence

Particulars	AMOUNT ($)
currency and coin	98
Treasury bill	12500
April-dated checks	370
checking account	3760
savings account	6350
Total Cash and Cash Equivalents	23078

                                                                                                                                                  

Explanation for other items

• Post dated check:- Since these are not ready to be converted till the date mentioned on the checks , therefore accounts receivable against these checks will be included in total accounts receivables.
• Prepaid postage in postage meter : - These are not to included in cash equivalent , it will be shown in other current assets in the Balance Sheet as Prepaid Expense.
• IOU from company receptionist :-- NOT include in cash equivalent. Will be shown as a Accounts Receivables.

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